Explained: What is the new ‘NACHO’ trade, and how is it different from ‘TACO’

After digesting 'TACO', Wall Street seems to be moving on to 'NACHO'. The new acronym which stands for “Not A Chance Hormuz Opens” is gaining momentum amid prolonged closure of the Strait of Hormuz which continues to push oil prices higher and keeps market sentiment fragile.

This comes after the earlier ‘TACO’ acronym, short for ‘Trump always chickens out’, became popular on social media as investors digested US President Donald Trump’s repeated threats on Iran - once warning to wipe off an entire civilisation, followed by backing down soon.

The NACHO acronym came into the limelight late in April when Bloomberg columnist Javier Blas wrote on X, “We thought we were getting a TACO (Trump Always Chickens Out). But so far we are getting a NACHO (Not A Chance Hormuz Opens).”




The war in the Middle East continues to rage on for its third month, with a peace agreement continuing to be elusive despite brief expectations of a sooner end to the conflict. This disrupted shipments through the Strait of Hormuz, which is a narrow 33-kilometre waterway connecting the Persian Gulf with the Gulf of Oman and accounts for over 20% of the world’s oil and gas shipments every day. Iran first threatened to attack any ship that tried to pass through the strait, forcing several companies to pause shipments. Later, the US created a naval blockade over the Strait, further increasing tensions.

On Thursday, Trump said that three American Navy destroyers were attacked as they moved through the strait. Trump later told reporters the ceasefire was still in effect and sought to play down the exchange.

Notably, White House spokesperson Kush Desai recently dismissed the ‘NACHO’ narrative. “Are these the same geniuses who thought President Trump would never secure voluntary Most-Favored-Nations drug pricing deals or renegotiate broken trade deals,” Desai said, as quoted by the Independent.

Trump previously rejected the ‘TACO’, calling it inaccurate. “I chicken out? Oh, I have never heard that,” he said.

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